Volume : 1, Issue : 1, June - 2012

Trade–off Between Inflation and Unemployment for BRICS Countries � Dead or Alive?

Krunal K Bhuva, Ashok R. Bantwa

Abstract :

This paper attempts to investigate the existence of unique trade–off between inflation and unemployment in BRICS countries during the current scenario. Using the yearly data of inflation and unemployment rates of BRICS countries from 2001 to 2010, the existence of tradeoff has been examined by using different statistical tests like correlation test, regression analysis test, t–test, ANOVA test. By applying all the tests, it is found that there exist poor positive correlation between inflation and unemployment for BRICS countries, showing that there is absence of trade–off between inflation and unemployment in BRICS countries.